Samsung has today reported a steep 40% decline in net profits in its Q4 earnings, stating that its chip and component business has been hit by weaker prices. It revealed that net profit for the final quarter of 2015 fell to 3.2T Korean won ($2.7B), significantly short of market expectations.

Facing global economic headwinds, including a sharp fall in oil prices, the company’s fourth quarter earnings fell QoQ, as the components side of the business was impacted by weakened prices for DRAM chips and LCD panels due to overall softer demand in the IT market and PCs.

Samsung’s smartphone business has long been struggling with increased competition from lower-cost Chinese brands, and the WSJ reports that the company expects things to be even tougher this year …